Private sector lender Kotak Mahindra Bank (KMB) today launched a Facebook-based instant fund transfer service wherein one can send money to friends on the social media network real time, for free.
“This is a bank agnostic product, the sender and the receiver may not be our account holders. We have used the IMPS platform on the National Payments Corporation of India (NPCI) network to make this possible,” KMB’s executive vice president and head of digital initiatives, Deepak Sharma, said.
At present, a sender can initiate fund transfer to any person through mobile phone, courtesy the IMPS infrastructure.
The IMPS platform has 28 banks under it and account holders of any of these banks can use the newly launched service, Sharma said, adding that there will be no charges for either sending or receiving the money. KMB has worked closely with the Reserve Bank and the National Payments Corporation of India for it.
The sender will have to register on a dedicated website for the initiative called ‘KayPay’ wherein he will have to give bank account details and the bank’s MMID, apart from personal credentials.
Once registered, the sender can initiate transactions and if the beneficiary is not registered on KayPay, he will be directed to a page to register for completed a transaction. If the beneficiary is registered on KayPay, the transaction will be executed faster.
On the security front, Sharma claimed it is fully secure, even in the event of the Facebook account getting compromised as it uses two-factor authentication to complete a transaction.